Lenovo reports 89% profit drop

Chinese computer maker, Lenovo reported today a huge drop on its first quarter profits from $46 million a year ago, to just $5 million this year. As most of you should recall, Lenovo acquired IBM's Personal Computer division last year, which put them in the map as the third largest PC manufacturer worldwide.

According to the NY Times story, industry observers where anticipating a much larger loss due to the IBM merger and the job cutting that comes with it, however the company did manage to turn a profit. That is not to say Lenovo is not struggling to gain market share and compete with Dell and HP, its two biggest competitors, let's not forget the PC market in general is slowing down and it will take tremendous amount of effort for companies to remain competitive in the years to come.